4 ms·

No, USDT and USDC are both backed on a 1:1 basis by banking custodians which are regularly audited.

by mumbisChungo 4y ago

Elinvynia 4y ago
Could you point me to an USDT audit? Thanks!
- Lionga 4y ago
  The whole audit is nicely cover in a single "Trust me bro"
  - mumbisChungo 4y ago
    you can read the texts of them yourself and make up your own mind DYOR or "don't trust, verify" are common mantras in the industry for a reason, and similarly are the reason that I hold custody of my own assets rather than relying on centralized entities like FTX.
- mumbisChungo 4y ago
  https://tether.to/en/transparency/#reports https://tether.to/en/transparency/#reports
  - cycrutchfield 4y ago
    Not an audit
    - mumbisChungo 4y ago
      One of the first links on that page is a document titled "INDEPENDENT AUDITORS' REPORT ON THE CONSOLIDATED RESERVES REPORT" https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9buRWR/6fe2987698dbbf39b947af718d736ddb/Std_ISAE_3000R_Opinion_30-6-2022_RC134792022BD0303.pdf https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...
      - cycrutchfield 4y ago
        A reserves report is not an audit
      - swarnie 4y ago
        Who are bdo.it ? Not one of the first four auditing companies i'd call or trust.
        NovemberWhiskey 4y ago
        BDO is literally the number five accounting firm globally; so, yeah, not the top four, but ...
        mikeyouse 4y ago
        BDO is a legit company, though not a "Big-4", I think most would consider them top-10 for audit without any qualms. It's much more reputable than some of the firms that Tether had been trotting out in the past.
- ulrashida 4y ago
  Roughly 20% of Tether's "cash equivalent" investments are with grade A-1 and A-2 parties. It's effectively stable, until it's not. We'll see it in our lifetimes.
alasdair_ 4y ago
USDT is backed by over $8billion in commercial paper, a lot of which seems to be in Chinese real estate companies that are very unlikely to be worth their claimed value. And note that this was true in May - global markets are WAY down since then. Moreover, it was only a spot verification - they could have moved money into treasuries for a day and then moved it back again. The auditors explicitly avoided commenting on this.
- mumbisChungo 4y ago
  Yes, it looks like 12% of their assets are in commercial paper. I'm not claiming to be an omniscient source of truth, but USDT is supposed to be backed 1:1, is audited regularly, and has survived extreme volatility events and bank runs for the better part of a decade. Maybe it will collapse some day. I personally have more trust in USDC and Circle, so I use that if I need a stablecoin.
  - belltaco 4y ago
    USDT wasn't even audited once, forget about regularly. https://blockworks.co/tether-pushes-back-timeline-on-audit-report/ https://blockworks.co/tether-pushes-back-timeline-on-audit-r...
    - mumbisChungo 4y ago
      Maybe I'm misunderstanding what this document is https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9buRWR/6fe2987698dbbf39b947af718d736ddb/Std_ISAE_3000R_Opinion_30-6-2022_RC134792022BD0303.pdf https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...
      - belltaco 4y ago
        That's not an audit, it's an attestation. The article says: >The company does release quarterly attestations, separate from a thorough audit, as required by a 2021 legal settlement with the New York Attorney General’s Office. Following the hiring of its new accounting firm, BDO Italia, earlier this month, Tether said it intends to release them on a monthly basis, beginning early next year.

No, USDT and USDC are both backed on a 1:1 basis by banking custodians which are regularly audited.

Elinvynia 4y ago

Could you point me to an USDT audit? Thanks!

Lionga 4y ago
The whole audit is nicely cover in a single "Trust me bro"
- mumbisChungo 4y ago
  you can read the texts of them yourself and make up your own mind DYOR or "don't trust, verify" are common mantras in the industry for a reason, and similarly are the reason that I hold custody of my own assets rather than relying on centralized entities like FTX.
mumbisChungo 4y ago
https://tether.to/en/transparency/#reports https://tether.to/en/transparency/#reports
- cycrutchfield 4y ago
  Not an audit
  - mumbisChungo 4y ago
    One of the first links on that page is a document titled "INDEPENDENT AUDITORS' REPORT ON THE CONSOLIDATED RESERVES REPORT" https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9buRWR/6fe2987698dbbf39b947af718d736ddb/Std_ISAE_3000R_Opinion_30-6-2022_RC134792022BD0303.pdf https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...
    - cycrutchfield 4y ago
      A reserves report is not an audit
    - swarnie 4y ago
      Who are bdo.it ? Not one of the first four auditing companies i'd call or trust.
      - NovemberWhiskey 4y ago
        BDO is literally the number five accounting firm globally; so, yeah, not the top four, but ...
      - mikeyouse 4y ago
        BDO is a legit company, though not a "Big-4", I think most would consider them top-10 for audit without any qualms. It's much more reputable than some of the firms that Tether had been trotting out in the past.
ulrashida 4y ago
Roughly 20% of Tether's "cash equivalent" investments are with grade A-1 and A-2 parties. It's effectively stable, until it's not. We'll see it in our lifetimes.

alasdair_ 4y ago

USDT is backed by over $8billion in commercial paper, a lot of which seems to be in Chinese real estate companies that are very unlikely to be worth their claimed value. And note that this was true in May - global markets are WAY down since then. Moreover, it was only a spot verification - they could have moved money into treasuries for a day and then moved it back again. The auditors explicitly avoided commenting on this.

mumbisChungo 4y ago
Yes, it looks like 12% of their assets are in commercial paper. I'm not claiming to be an omniscient source of truth, but USDT is supposed to be backed 1:1, is audited regularly, and has survived extreme volatility events and bank runs for the better part of a decade. Maybe it will collapse some day. I personally have more trust in USDC and Circle, so I use that if I need a stablecoin.
- belltaco 4y ago
  USDT wasn't even audited once, forget about regularly. https://blockworks.co/tether-pushes-back-timeline-on-audit-report/ https://blockworks.co/tether-pushes-back-timeline-on-audit-r...
  - mumbisChungo 4y ago
    Maybe I'm misunderstanding what this document is https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9buRWR/6fe2987698dbbf39b947af718d736ddb/Std_ISAE_3000R_Opinion_30-6-2022_RC134792022BD0303.pdf https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...
    - belltaco 4y ago
      That's not an audit, it's an attestation. The article says: >The company does release quarterly attestations, separate from a thorough audit, as required by a 2021 legal settlement with the New York Attorney General’s Office. Following the hiring of its new accounting firm, BDO Italia, earlier this month, Tether said it intends to release them on a monthly basis, beginning early next year.